3) The Sith are not innately evil for being Sith! Indeed, the Sith ideology makes far more sense than that of the Jedi in that it is far more practical. As shown in TSL and BOSSR, there are only two flaws: random cruelty and betrayal. Remove that and the Sith are the good guys.

Just to fill you in, the Sith are written in as the villains of the Star Wars universe. Regardless of what you think they are, 90% of the time they are there to be the hero's opponent. You could switch them out for cute bunny rabbits, but as long as they are in that role it doesn't matter what they look like, or think or believe in. Those details are filled in after you establish who's on what team and what team the player is on.